Dollar Tree Inc. will sell a majority of its products for more than $1, edging away from the approach that gave the discount chain its name.
After 35 years of selling goods for a buck, Dollar Tree is boosting its standard price point to $1.25 by the end of April, the company said in a statement Tuesday. While the decision is “not a reaction to short-term or transitory market conditions,” Dollar Tree acknowledged the inflationary environment and said the price boost will help mitigate historically high costs, including freight and distribution expenses, as well as wage increases.
“Lifting the one-dollar constraint represents a monumental step for our organization,” CEO Michael Witynski said in the statement. The move will allow Dollar Tree to expand its product assortment and reintroduce some items that were pulled due to the $1 constraint.